Toshiba to Double AI Drive Capacity, Sending Seagate and Western Digital Tumbling
STX has more than doubled off its 52-week low of $209.
Summary
Seagate shares fell 12% to $829.40 and Western Digital dropped 9% to $419.59 after Nikkei reported Toshiba plans to double production capacity for AI data center drives in fiscal 2027. The expansion threatens to ease the supply shortage that has driven record profits and stock gains for both companies. This is the first concrete competitive supply response to the AI storage boom, directly challenging the pricing power that underpinned Seagate's blowout FY2026 results. The move follows a series of insider sales at Seagate, suggesting executives may see the peak approaching. Watch for Toshiba's official confirmation and any capacity guidance from Seagate or Western Digital on their next earnings calls.
At the time of this announcement, STX was trading at $826.49 on NASDAQ in the Technology sector, with a market capitalization of approximately $187.9B. The 52-week trading range was $209.00 to $1,145.00. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.